The Federal Government is set to auction two reopened bonds worth ₦300 billion in March 2025. The move is part of its plan to manage budget shortfalls and invest in infrastructure projects.
The Debt Management Office (DMO) announced that the auction will take place on March 24, with settlement scheduled for March 26. The bonds on offer include a ₦200 billion, five-year bond with a 19.30% interest rate, maturing in April 2029, and a ₦100 billion, nine-year bond with a 19.89% interest rate, maturing in May 2033.
Since these bonds are reopenings of previously issued securities, the interest rates remain unchanged. Investors will buy them at prices determined by the yield-to-maturity bids that match the auction volume. In addition to their fixed returns, investors will also pay for any accrued interest.
Each bond is available in units of ₦1,000, with a minimum purchase of ₦50,001,000 and additional investments in multiples of ₦1,000. Interest payments will be made twice a year, ensuring a steady income for investors. At maturity, the government will repay the full principal amount.
These bonds qualify as government securities under Nigerian tax laws, making them tax-exempt for pension funds and other institutional investors. They are also listed on the Nigerian Exchange Limited (NGX) and FMDQ OTC Securities Exchange, ensuring they can be traded easily.
With the backing of the Federal Government, these bonds are considered low-risk investments. They are secured by Nigeria’s general assets, adding another layer of security for investors.
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